Olivarez asked to explain P’que’s P2.8B cash shortfall
A few days after boasting the city’s supposedly improved economy, Parañaque mayor Edwin Olivarez is now being asked to explain the P2.85 billion cash deficit the city government incurred last year.
The Commission on Audit (COA), in an audit report for 2014, also reported that the Olivarez administration also had “unrealized” income of P786.147 million, the Philippine Star reported.
State auditors blamed these on “fund mismanagement”.
The P786.147 unrealized income include uncollected local taxes amounting to P535.776 million, projected income from public auction of delinquent real properties amounting to P240.614 million and ad valorem tax on idle land amounting to P51 million.
The COA report also questioned the use of last year’s collections for the settlement of previous obligations amounting to P824.099 million and non-payment of obligations amounting to P1.180 billion last year in violation of the Local Government Code.
The audit agency recommended to Olivarez to implement cost-cutting measures and strategies to improve the city government’s cash position, and provide attainable budget estimates and implement its plans, programs and policies within its financial resources.
In his State of the City Address last week, Olivarez claimed he managed to turn around the city’s financial standing in just two year’s time.
Olivarez credited the city’s current financial standing to a number of measures he implemented such as the tax amnesty program that netted at least P700 million in earnings and more efficient tax collections and prudent spending.
When he assumed office in 2013, he admitted that the city government has a cash deficit of P 2.786 billion aside from another P2 billion that it owes from the Land Bank of the Philippines.
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